Record high inflation is not just having a negative impact at gas pumps and checkout lines.
It’s also hurting the home construction industry.
In the past year, the cost of construction materials and labor has soared. These steep prices forced every contractor and vendor to increase their fees which in turn resulted in sky-high home build estimates and costs.
If that wasn’t bad enough, many builders are having even more difficulty securing loans for their new build projects.
While many traditional avenues for residential construction funding are currently blocked, there’s an innovative resource that’s paving the way for builders to stay funded and construct new homes.
Below, we’ll show you how Snap.Build® is making a difference in a world of record-high inflation.
A New Way To Secure Funding in Construction
Right now, many home builders are not getting their projects off the ground. Or they’re hitting the pause button on their in-progress projects.
Why?
The two main reasons for these scenarios are:
- Not being approved for a loan.
- Receiving a loan that provides insufficient funds.
Rather than run the risk of encountering these problematic scenarios, builders can find the construction funding they need via Snap.Build.
Applying for a loan from a bank or other financial institution is a long and stressful process. It’s even more upsetting when the process ends with rejection.
Snap.Build removes this nerve-wracking process from home builders’ plates by quickly facilitating loans for them.
Instead of applying for a loan from a bank, builders can rely on Snap.Build to provide the financing needed for their spec construction and land projects.
If the submitted loan application is approved, our team evaluates each spec construction, land or new home build project to determine the amount needed for each project. Once each individual project is approved, Snap.Build is ready to fund the project within three weeks.
Loan and Construction Management Benefits Beyond Construction Funding
Unlike banks, Snap.Build does more than simply provide funds for residential construction projects.
Snap.Build not only streamlines the loan application process, it also provides additional benefits, such as simplifying loan and construction management, too.
With Snap.Build, clients can build new single-family homes faster, manage their projects better, reduce construction costs, and make more money.
In addition to securing construction financing, Snap.Build also pays all subcontractors, vendors and suppliers directly on behalf of the builder. All invoices are paid within a week of receipt.
With prompt payments, Snap.Build:
- Prevents delays due to late payments.
- Keeps the project on track and on time.
By relying on Snap.Build to manage and pay all invoices, builders typically save between 3% and 5% on each of their projects.
Along with timely payments, builders also benefit from Snap.Build’s first-rate construction management software.
Using this platform, builders can:
- Track the progress of the project.
- View pictures of recently completed jobs.
- Review timely job reports.
- Check the loan-in-progress status.
- Confirm purchase order payments.
- Assess weekly disbursements.
Having access to this information 24/7 allows builders with opportunities to improve workflow efficiency, identify ways to reduce expenses, and maximize the budget for each individual project.
Beat Inflation With Snap.Build
Clearly, Snap.Build is an ideal solution for securing new construction loans during this time of rising inflation and interest rates.
By removing the barriers between builders and the much-needed funding, Snap.Build helps keep the spec construction industry operating in challenging times.
Additionally, this innovative platform helps builders reduce material and labor costs by paying all invoices promptly and provides real-time access to vital information to better manage their projects and budgets.
When unprecedented challenges arise, it’s time to find unique solutions.
For the home construction industry, that solution is Snap.Build.
Check out our frequently asked questions to learn more about this innovative solution and contact our expert team today!